Mark Moss argues against Ray Dalio's All-Weather Portfolio, which spreads money across 17 assets. Instead, concentrate investments in what you actually understand, whether that's real estate, Bitcoin, or individual stocks, and skip the diversification into things you don't know.
How do I get an above average return but without taking extreme risk? And now typically what we would do is we do asset allocation and then diversification. What we would do is say, here's 100% of my money. I put some into Bitcoin over here. I'm hoping for a 40 to 50% return, but I'm also going to put some into bonds right here. And I'm hoping for a 1 to 2% return. And I'm also going to put some in the S&P 500, which, you know, maybe I'll get a 10 to 12% return. And then we think about like diversification. So within this stock allocation, I might put it into like different stocks. I don't like that. I don't really like like Ray Dalio's portfolio, the All-Weather Portfolio. He wants you to go into 17 different things. I don't know 17 different things. I know real estate pretty good. I know Bitcoin really good. Nvidia seems like a great company, but like I don't really understand microchips. And if you're super into that and you're super interested and that's what you read on your spare time, like cool, then you should invest in that. It's just not for me. And the point that I want to make is it doesn't have to be for any of us.
